,,ii #aacth ,,congress #ast ,session ,s4 #bgh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #aa1 #bjac ,mr4 ,whitehouse 7for himself1 ,mr4 ,harkin1 ,mr4 ,sanders1 ,mr4 ,levin1 and ,mr4 ,merkley7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to replace the ,budget ,control ,act sequester for fiscal year #bjac by eliminating tax loopholes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,job ,preservation and ,sequester ,replacement ,act of #bjac4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,,title ,i--,elimination of sequestration for fiscal year #bjac ,sec4 #aja4 ,no sequestration for #bjac4 ,,title ,,ii--,elimination of ,tax ,loopholes for ,high-,income ,taxpayers ,sec4 #bja4 ,minimum tax for high-income earners4 ,sec4 #bjb4 ,requiring high-income professionals to pay their payroll taxes4 ,sec4 #bjc4 ,elimination of private jet giveaway4 ,,title ,,iii--,elimination of tax loopholes for offshoring manufacturers ,sec4 #cja4 ,ending tax breaks for offshoring manufacturers4 ,,title ,,iv--,elimination of tax loopholes for oil and gas companies ,sec4 #dja4 ,modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers4 ,sec4 #djb4 ,limitation on section #aii deduction attributable to oil1 natural gas1 or primary products thereof4 ,sec4 #djc4 ,limitation on deduction for intangible drilling and development costs4 ,sec4 #djd4 ,limitation on percentage depletion allowance for oil and gas wells4 ,sec4 #dje4 ,limitation on deduction for tertiary injectants4 ,sec4 #djf4 ,repeal of outer ,continental ,shelf deep water and deep gas royalty relief4 ,i ,elimination of sequestration for fiscal year #bjac #aja4 ,no sequestration for #bjac 7a7 ,in general ,section #bea;,a7#c77;,e7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ija;a7#c77;,e77 is amended by striking #bd1jjj1jjj1jjj and inserting #aji1cjj1jjj1jjj4 7b7 ,repeal of ,budget ,control ,act sequester for fiscal year #bjac 7#a7 ,repeal ,section #ija7;e7 of the ,american ,taxpayer ,relief ,act of #bjab 7,public ,law #aab-bdj7 is repealed4 7#b7 ,,bbedca ,section #bea;,a of the ,balanced ,budget and ,emergency ,deficit ,control ,act 7#b ,u4,s4,c4 #ija;a7 is amended-- 7,a7 in paragraph 7#d71 by striking ,on ,march #a1 #bjac1 for fiscal year #bjac1 and in and inserting ,in2 7,b7 in paragraph 7#e71 by striking #bjac and inserting #bjad2 7,c7 in paragraph 7#f71 by striking #bjac and inserting #bjad2 and 7,d7 in paragraph 7#g7-- 7i7 by striking reductions4-- and all that follows through ,on the date of the submission and inserting reductions4--,on the date of the submission2 and 7ii7 by redesignating clauses 7i7 and 7ii7 as subparagraphs 7,a7 and 7,b71 respectively4 ,,ii ,elimination of ,tax ,loopholes for ,high-,income ,taxpayers #bja4 ,minimum tax for high-income earners 7a7 ,in general ,subchapter ,a of chapter #a is amended by adding at the end the following new part3 ,,viii ,fair share tax on high-income taxpayers ,sec4 #ei;,b4 ,fair share tax4 #ei;,b4 ,fair share tax 7a7 ,general rule 7#a7 ,phase-in of tax ,in the case of any high-income taxpayer1 there is hereby imposed for a taxable year 7in addition to any other tax imposed by this subtitle7 a tax equal to the product of-- 7,a7 the amount determined under paragraph 7#b71 and 7,b7 a fraction 7not to exceed #a7-- 7i7 the numerator of which is the excess of-- 7,i7 the taxpayer's adjusted gross income1 over 7,,ii7 the dollar amount in effect under subsection 7c77#a71 and 7ii7 the denominator of which is the dollar amount in effect under subsection 7c77#a74 7#b7 ,amount of tax ,the amount of tax determined under this paragraph is an amount equal to the excess 7if any7 of-- 7,a7 the tentative fair share tax for the taxable year1 over 7,b7 the excess of-- 7i7 the sum of-- 7,i7 the regular tax liability 7as defined in section #bf7;b77 for the taxable year1 determined without regard to any tax liability determined under this section1 7,,ii7 the tax imposed by section #ee for the taxable year1 plus 7,,iii7 the payroll tax for the taxable year1 over 7ii7 the credits allowable under part ,,iv of subchapter ,a 7other than sections #bg7;a71 #ca1 and #cd74 7b7 ,tentative fair share tax ,for purposes of this section-- 7#a7 ,in general ,the tentative fair share tax for the taxable year is #cj percent of the excess of-- 7,a7 the adjusted gross income of the taxpayer1 over 7,b7 the modified charitable contribution deduction for the taxable year4 7#b7 ,modified charitable contribution deduction ,for purposes of paragraph 7#a7-- 7,a7 ,in general ,the modified charitable contribution deduction for any taxable year is an amount equal to the amount which bears the same ratio to the deduction allowable under section #agj 7section #fdb7;c7 in the case of a trust or estate7 for such taxable year as-- 7i7 the amount of itemized deductions allowable under the regular tax 7as defined in section #ee7 for such taxable year1 determined after the application of section #fh1 bears to 7ii7 such amount1 determined before the application of section #fh4 7,b7 ,taxpayer must itemize ,in the case of any individual who does not elect to itemize deductions for the taxable year1 the modified charitable contribution deduction shall be zero4 7c7 ,high-,income taxpayer ,for purposes of this section-- 7#a7 ,in general ,the term high-income taxpayer means1 with respect to any taxable year1 any taxpayer 7other than a corporation7 with an adjusted gross income for such taxable year in excess of #a1jjj1jjj 7#ej percent of such amount in the case of a married individual who files a separate return74 7#b7 ,inflation adjustment 7,a7 ,in general ,in the case of a taxable year beginning after #bjac1 the #a1jjj1jjj amount under paragraph 7#a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjab for calendar year #aiib in subparagraph 7,b7 thereof4 7,b7 ,rounding ,if any amount as adjusted under subparagraph 7,a7 is not a multiple of #aj1jjj1 such amount shall be rounded to the next lowest multiple of #aj1jjj4 7d7 ,payroll tax ,for purposes of this section1 the payroll tax for any taxable year is an amount equal to the excess of-- 7#a7 the taxes imposed on the taxpayer under sections #adja1 #adaa1 #caja1 #cbja1 and #cbaa7;a7 7to the extent such tax is attributable to the rate of tax in effect under section #caja7 with respect to such taxable year or wages or compensation received during such taxable year1 over 7#b7 the deduction allowable under section #afd7;f7 for such taxable year4 7e7 ,special rule for estates and trusts ,for purposes of this section1 in the case of an estate or trust1 adjusted gross income shall be computed in the manner described in section #fg7;e74 7f7 ,not treated as tax imposed by this chapter for certain purposes ,the tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter 7other than the credit allowed under section #bg7;a77 or for purposes of section #ee4 4 7b7 ,clerical amendment ,the table of parts for subchapter ,a of chapter #a is amended by adding at the end the following new item3 ,part ,,viii--,fair share tax on high-,income taxpayers 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjab4 #bjb4 ,requiring high-income professionals to pay their payroll taxes 7a7 ,in general ,section #adjb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7m7 ,special rules for professional service businesses 7#a7 ,shareholders providing services to specified ,s corporations 7,a7 ,in general ,in the case of an applicable shareholder who provides substantial services with respect to a professional service business referred to in subparagraph 7,c7 of a specified ,s corporation-- 7i7 such shareholder shall be treated as engaged in the trade or business of such professional service business with respect to items of income or loss described in section #acff which are attributable to such business1 and 7ii7 such shareholder's net earnings from self-employment shall include such shareholder's pro rata share of such items of income or loss1 except that in computing such pro rata share of such items the exceptions provided in subsection 7a7 shall apply4 7,b7 ,treatment of family members ,except as otherwise provided by the ,secretary1 the applicable shareholder's pro rata share of items referred to in subparagraph 7,a7 shall be increased by the pro rata share of such items of each member of such applicable shareholder's family 7within the meaning of section #cah7;a77#a77 who does not provide substantial services with respect to such professional service business4 7,c7 ,specified ,s corporation ,for purposes of this subsection1 the term specified ,s corporation means-- 7i7 any ,s corporation which is a partner in a partnership which is engaged in a professional service business if substantially all of the activities of such ,s corporation are performed in connection with such partnership1 and 7ii7 any other ,s corporation which is engaged in a professional service business if #ge percent or more of the gross income of such business is attributable to service of #c or fewer shareholders of such corporation4 7,d7 ,applicable shareholder ,for purposes of this paragraph1 the term applicable shareholder means any shareholder whose modified adjusted gross income for the taxable year exceeds-- 7i7 in the case of a shareholder making a joint return under section #fjac or a surviving spouse 7as defined in section #b7;a771 #bej1jjj1 7ii7 in the case of a married shareholder 7as defined in section #ggjc7 filing a separate return1 half of the dollar amount determined under clause 7i71 and 7iii7 in any other case1 #bjj1jjj4 7#b7 ,partners 7,a7 ,in general ,in the case of any partnership which is engaged in a professional service business1 subsection 7a77#ac7 shall not apply to any applicable partner who provides substantial services with respect to such professional service business4 7,b7 ,applicable partner ,for purposes of this paragraph1 the term applicable partner means any partner whose modified adjusted gross income for the taxable year exceeds-- 7i7 in the case of a partner making a joint return under section #fjac or a surviving spouse 7as defined in section #b7;a771 #bej1jjj1 7ii7 in the case of a married partner 7as defined in section #ggjc7 filing a separate return1 half of the dollar amount determined under clause 7i71 and 7iii7 in any other case1 #bjj1jjj4 7#c7 ,professional service business ,for purposes of this subsection1 the term professional service business means any trade or business 7or portion thereof7 providing services in the fields of health1 law1 lobbying1 engineering1 architecture1 accounting1 actuarial science1 performing arts1 consulting1 athletics1 investment advice or management1 or brokerage services4 7#d7 ,modified adjusted gross income ,for purposes of this subsection1 the term modified adjusted gross income means adjusted gross income-- 7,a7 determined without regard to any deduction allowed under section #afd7;f71 and 7,b7 increased by the amount excluded from gross income under section #iaa7;a77#a74 7#e7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection1 including regulations which prevent the avoidance of the purposes of this subsection through tiered entities or otherwise4 7#f7 ,cross reference ,for employment tax treatment of wages paid to shareholders of ,s corporations1 see subtitle ,c4 4 7b7 ,conforming amendment ,section #baa of the ,social ,security ,act is amended by adding at the end the following new subsection3 7l7 ,special rules for professional service businesses 7#a7 ,shareholders providing services to specified ,s corporations 7,a7 ,in general ,in the case of an applicable shareholder who provides substantial services with respect to a professional service business referred to in subparagraph 7,c7 of a specified ,s corporation-- 7i7 such shareholder shall be treated as engaged in the trade or business of such professional service business with respect to items of income or loss described in section #acff of the ,internal ,revenue ,code of #aihf which are attributable to such business1 and 7ii7 such shareholder's net earnings from self-employment shall include such shareholder's pro rata share of such items of income or loss1 except that in computing such pro rata share of such items the exceptions provided in subsection 7a7 shall apply4 7,b7 ,treatment of family members ,except as otherwise provided by the ,secretary of the ,treasury1 the applicable shareholder's pro rata share of items referred to in subparagraph 7,a7 shall be increased by the pro rata share of such items of each member of such applicable shareholder's family 7within the meaning of section #cah7;a77#a7 of the ,internal ,revenue ,code of #aihf7 who does not provide substantial services with respect to such professional service business4 7,c7 ,specified ,s corporation ,for purposes of this subsection1 the term specified ,s corporation means-- 7i7 any ,s corporation 7as defined in section #acfa7;a7 of the ,internal ,revenue ,code of #aihf7 which is a partner in a partnership which is engaged in a professional service business if substantially all of the activities of such ,s corporation are performed in connection with such partnership1 and 7ii7 any other ,s corporation 7as so defined7 which is engaged in a professional service business if #ge percent or more of the gross income of such business is attributable to service of #c or fewer shareholders of such corporation4 7,d7 ,applicable shareholder ,for purposes of this paragraph1 the term applicable shareholder means any shareholder whose modified adjusted gross income for the taxable year exceeds-- 7i7 in the case of a shareholder making a joint return under section #fjac of the ,internal ,revenue ,code of #aihf or a surviving spouse 7as defined in section #b7;a7 of such ,code71 #bej1jjj1 7ii7 in the case of a married shareholder 7as defined in section #ggjc of such ,code7 filing a separate return1 half of the dollar amount determined under clause 7i71 and 7iii7 in any other case1 #bjj1jjj4 7#b7 ,partners 7,a7 ,in general ,in the case of any partnership which is engaged in a professional service business1 subsection 7a77#ab7 shall not apply to any applicable partner who provides substantial services with respect to such professional service business4 7,b7 ,applicable partner ,for purposes of this paragraph1 the term applicable partner means any partner whose modified adjusted gross income for the taxable year exceeds-- 7i7 in the case of a partner making a joint return under section #fjac of the ,internal ,revenue ,code of #aihf or a surviving spouse 7as defined in section #b7;a7 of such ,code71 #bej1jjj1 7ii7 in the case of a married partner 7as defined in section #ggjc of such ,code7 filing a separate return1 half of the dollar amount determined under clause 7i71 and 7iii7 in any other case1 #bjj1jjj4 7#c7 ,professional service business ,for purposes of this subsection1 the term professional service business means any trade or business 7or portion thereof7 providing services in the fields of health1 law1 lobbying1 engineering1 architecture1 accounting1 actuarial science1 performing arts1 consulting1 athletics1 investment advice or management1 or brokerage services4 7#d7 ,modified adjusted gross income ,for purposes of this subsection1 the term modified adjusted gross income means adjusted gross income as determined under section #fb of the ,internal ,revenue ,code of #aihf-- 7,a7 determined without regard to any deduction allowed under section #afd7;f7 of such ,code1 and 7,b7 increased by the amount excluded from gross income under section #iaa7;a77#a7 of such ,code4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjab4 #bjc4 ,elimination of private jet giveaway 7a7 ,in general ,subparagraph 7,c7 of section #afh7;e77#c7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7iv71 by redesignating clause 7v7 as clause 7vi71 and by inserting after clause 7iv7 the following new clause3 7v7 any general aviation aircraft1 and 4 7b7 ,class ,life ,paragraph 7#c7 of section #afh7;g7 of the ,internal ,revenue ,code of #aihf is amended by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 ,general aviation aircraft ,in the case of any general aviation aircraft1 the recovery period used for purposes of paragraph 7#b7 shall be #ab years4 4 7c7 ,general aviation aircraft ,subsection 7i7 of section #afh of the ,internal ,revenue ,code of #aihf is amended by inserting after paragraph 7#ai7 the following new paragraph3 7#bj7 ,general aviation aircraft ,the term general aviation aircraft means any airplane or helicopter 7including airframes and engines7 not used in commercial or contract carrying of passengers or freight1 but which primarily engages in the carrying of passengers4 4 7d7 ,effective date ,this section shall be effective for property placed in service after ,december #ca1 #bjab4 ,,iii ,elimination of tax loopholes for offshoring manufacturers #cja4 ,ending tax breaks for offshoring manufacturers 7a7 ,general ,rule ,subsection 7a7 of section #ied of the ,internal ,revenue ,code of #aihf is amended by striking the period at the end of paragraph 7#e7 and inserting 1 and1 by redesignating paragraph 7#e7 as paragraph 7#d71 and by adding at the end the following new paragraph3 7#e7 imported property income for the taxable year 7determined under subsection 7j7 and reduced as provided in subsection 7b77#e774 4 7b7 ,definition of ,imported ,property ,income ,section #ied of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7j7 ,imported ,property ,income 7#a7 ,in general ,for purposes of subsection 7a77#e71 the term imported property income means income 7whether in the form of profits1 commissions1 fees1 or otherwise7 derived in connection with-- 7,a7 manufacturing1 producing1 growing1 or extracting imported property2 7,b7 the sale1 exchange1 or other disposition of imported property2 or 7,c7 the lease1 rental1 or licensing of imported property4 ,such term shall not include any foreign oil and gas extraction income 7within the meaning of section #ijg7;c77 or any foreign oil related income 7within the meaning of section #ijg7;c774 7#b7 ,imported property ,for purposes of this subsection-- 7,a7 ,in general ,except as otherwise provided in this paragraph1 the term imported property means property which is imported into the ,united ,states by the controlled foreign corporation or a related person4 7,b7 ,imported property includes certain property imported by unrelated persons ,the term imported property includes any property imported into the ,united ,states by an unrelated person if1 when such property was sold to the unrelated person by the controlled foreign corporation 7or a related person71 it was reasonable to expect that-- 7i7 such property would be imported into the ,united ,states2 or 7ii7 such property would be used as a component in other property which would be imported into the ,united ,states4 7,c7 ,exception for property subsequently exported ,the term imported property does not include any property which is imported into the ,united ,states and which-- 7i7 before substantial use in the ,united ,states1 is sold1 leased1 or rented by the controlled foreign corporation or a related person for direct use1 consumption1 or disposition outside the ,united ,states2 or 7ii7 is used by the controlled foreign corporation or a related person as a component in other property which is so sold1 leased1 or rented4 7,d7 ,exception for certain agricultural commodities ,the term imported property does not include any agricultural commodity which is not grown in the ,united ,states in commercially marketable quantities4 7#c7 ,definitions and special rules 7,a7 ,import ,for purposes of this subsection1 the term import means entering1 or withdrawal from warehouse1 for consumption or use4 ,such term includes any grant of the right to use intangible property 7as defined in section #icf7;h77#c77;,b77 in the ,united ,states4 7,b7 ,united states ,for purposes of this subsection1 the term ,united ,states includes the ,commonwealth of ,puerto ,rico1 the ,virgin ,islands of the ,united ,states1 ,guam1 ,american ,samoa1 and the ,commonwealth of the ,northern ,mariana ,islands4 7,c7 ,unrelated person ,for purposes of this subsection1 the term unrelated person means any person who is not a related person with respect to the controlled foreign corporation4 7,d7 ,coordination with foreign base company sales income ,for purposes of this section1 the term foreign base company sales income shall not include any imported property income4 4 7c7 ,separate ,application of ,limitations on ,foreign ,tax ,credit for ,imported ,property ,income 7#a7 ,in general ,paragraph 7#a7 of section #ijd7;d7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of subparagraph 7,a71 by redesignating subparagraph 7,b7 as subparagraph 7,c71 and by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 imported property income1 and 4 7#b7 ,imported property income defined ,paragraph 7#b7 of section #ijd7;d7 of such ,code is amended by redesignating subparagraphs 7,i71 7,j71 and 7,k7 as subparagraphs 7,j71 7,k71 and 7,l71 respectively1 and by inserting after subparagraph 7,h7 the following new subparagraph3 7,i7 ,imported property income ,the term imported property income means any income received or accrued by any person which is of a kind which would be imported property income 7as defined in section #ied7;j774 4 7#c7 ,conforming amendment ,clause 7ii7 of section #ijd7;d77#b77;,a7 of such ,code is amended by inserting or imported property income after passive category income4 7d7 ,technical ,amendments 7#a7 ,clause 7iii7 of section #ieb7;c77#a77;,b7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by redesignating subclauses 7,,ii71 7,,iii71 7,,iv71 and 7,v7 as subclauses 7,,iii71 7,,iv71 7,v71 and 7,,vi71 and 7,b7 by inserting after subclause 7,i7 the following new subclause3 7,,ii7 imported property income1 4 7#b7 ,the last sentence of paragraph 7#d7 of section #ied7;b7 of such ,code is amended by striking subsection 7a77#e7 and inserting subsection 7a77#d74 7#c7 ,paragraph 7#e7 of section #ied7;b7 of such ,code is amended by striking and the foreign base company oil related income and inserting the foreign base company oil related income1 and the imported property income4 7e7 ,effective ,date ,the amendments made by this section shall apply to taxable years of foreign corporations beginning after the date of the enactment of this ,act1 and to taxable years of ,united ,states shareholders within which or with which such taxable years of such foreign corporations end4 ,,iv ,elimination of tax loopholes for oil and gas companies #dja4 ,modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers 7a7 ,in general ,section #ija of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,special rules relating to major integrated oil companies which are dual capacity taxpayers 7#a7 ,general rule ,notwithstanding any other provision of this chapter1 any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company 7as defined in section #afg7;h77#e77;,b77 to a foreign country or possession of the ,united ,states for any period shall not be considered a tax-- 7,a7 if1 for such period1 the foreign country or possession does not impose a generally applicable income tax1 or 7,b7 to the extent such amount exceeds the amount 7determined in accordance with regulations7 which-- 7i7 is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession1 or 7ii7 would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer4 ,nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph 7,b74 7#b7 ,dual capacity taxpayer ,for purposes of this subsection1 the term dual capacity taxpayer means1 with respect to any foreign country or possession of the ,united ,states1 a person who-- 7,a7 is subject to a levy of such country or possession1 and 7,b7 receives 7or will receive7 directly or indirectly a specific economic benefit 7as determined in accordance with regulations7 from such country or possession4 7#c7 ,generally applicable income tax ,for purposes of this subsection-- 7,a7 ,in general ,the term generally applicable income tax means an income tax 7or a series of income taxes7 which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession4 7,b7 ,exceptions ,such term shall not include a tax unless it has substantial application1 by its terms and in practice1 to-- 7i7 persons who are not dual capacity taxpayers1 and 7ii7 persons who are citizens or residents of the foreign country or possession4 4 7b7 ,effective ,date 7#a7 ,in general ,the amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this ,act4 7#b7 ,contrary treaty obligations upheld ,the amendments made by this section shall not apply to the extent contrary to any treaty obligation of the ,united ,states4 #djb4 ,limitation on section #aii deduction attributable to oil1 natural gas1 or primary products thereof 7a7 ,denial of deduction ,paragraph 7#d7 of section #aii7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,e7 ,special rule for certain oil and gas income ,in the case of any taxpayer who is a major integrated oil company 7as defined in section #afg7;h77#e77;,b77 for the taxable year1 the term domestic production gross receipts shall not include gross receipts from the production1 transportation1 or distribution of oil1 natural gas1 or any primary product 7within the meaning of subsection 7d77#i77 thereof4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjab4 #djc4 ,limitation on deduction for intangible drilling and development costs 7a7 ,in general ,section #bfc7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new sentence3 ,this subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company 7as defined in section #afg7;h77#e77;,b7744 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjab4 #djd4 ,limitation on percentage depletion allowance for oil and gas wells 7a7 ,in general ,section #fac;,a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,application with respect to major integrated oil companies ,in the case of any taxable year in which the taxpayer is a major integrated oil company 7as defined in section #afg7;h77#e77;,b771 the allowance for percentage depletion shall be zero4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjab4 #dje4 ,limitation on deduction for tertiary injectants 7a7 ,in general ,section #aic of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7d7 ,application with respect to major integrated oil companies ,this section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company 7as defined in section #afg7;h77#e77;,b774 4 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjab4 #djf4 ,repeal of outer ,continental ,shelf deep water and deep gas royalty relief 7a7 ,in general ,sections #cdd and #cde of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aeijd1 #aeije7 are repealed4 7b7 ,administration ,the ,secretary of the ,interior shall not be required to provide for royalty relief in the lease sale terms beginning with the first lease sale held on or after the date of enactment of this ,act for which a final notice of sale has not been published4